With fears growing that the rush of investors into buy-to-let will create a surplus of properties to rent, could salvation for landlords really come in the unlikely form of students?

With the Government committed to putting 50pc of school-leavers through university by 2010, cash-strapped universities are already under pressure to find enough accommodation - when the percentage is barely touching 40pc.

A survey by agents FPD Savills last summer reckoned that barely 25pc of the potential accommodation needs of students have so far been met.

Just 20,000 new bed spaces are currently in the supply pipeline, despite Government plans to get thousands more school-leavers onto campus.

Savills' research in May 2003 indicated that most university accommodation in the form of single self-catered units costs an average rent of £51.67 per week - with ensuite facilities pushing that figure up by as much as 50pc.

Older houses with rooms large enough for ensuite facilities could be money-spinners in university towns.

However, Bruce Haagensen at Chantry Estate Agents disagreed with the findings.

He said: "Statements like this could create problems for inexperienced people who buy-to-let on the strength of this.

"Whilst I accept that there is a move to get more students into university this should be looked at in conjunction with top-up fees which the Government is also introducing.

"However I feel that of the two proposals, the higher fees is a definite, whereas the other is dependant upon other factors, not the least of which is whether all these extra students will be able to afford university or perhaps want to take on the inevitable debt.

"As anyone taking a drive round Jesmond, Sandyford or Heaton will see at present, Newcastle has a large number of student properties still not let and the universities are looking to build more halls of residence.

"This coupled with more students opting to stay at home to keep costs down and more parents buying somewhere while their children study must also have an impact."